We advised Figure on the offering

Davis Polk advised Figure Technology Solutions, Inc. in connection with an SEC-registered offering by the company of 4,375,000 shares of Series A blockchain common stock for total gross proceeds of approximately $150 million. The proceeds from the offering, as well as cash on hand, were used to repurchase 4,687,500 shares of Class A common stock from certain existing stockholders of Figure. The offering was consummated on the same day that it was executed (T+0 settlement), and included a direct retail investment process conducted through Figure Markets, whereby eligible retail investors submitted investment requests for blockchain stock in the offering.

The blockchain stock is the first SEC-registered common equity to be natively issued and settled entirely on blockchain infrastructure, leveraging Figure’s alternative trading system for instantaneous trading. The selling stockholders received YLDS, Figure’s SEC-registered yield-bearing stablecoin, as consideration for the sale of their shares of Class A common stock.

Figure is a blockchain-native capital marketplace that seamlessly connects origination, funding, and secondary market activity. More than 200 partners use its loan origination system and capital marketplace. Collectively, Figure and its partners have originated over $22 billion of home equity financing to date, among other products, making Figure’s ecosystem the largest non-bank provider of home equity financing. The company’s fastest growing components are Figure Connect, its consumer credit marketplace, and Democratized Prime, Figure’s on-chain lend-borrow marketplace. Figure’s ecosystem also includes DART (Digital Asset Registry Technology), for asset custody and lien perfection, and YLDS.

The Davis Polk capital markets team included partners Byron B. Rooney and Joseph A. Hall, and associates Kerim K. Aksoy, Elli Park and Monica Rodriguez. Partner Zachary J. Zweihorn and counsel Justin Levine provided financial institutions advice. Partner Kara L. Mungovan provided tax advice. Counsel Sarah E. Kim provided 1940 Act advice. Partner Travis Triano provided executive compensation advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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